Is ManpowerGroup Inc (NYSE:MAN) Overpaying Its CEO?
In 2014 Jonas Prising was appointed CEO of ManpowerGroup Inc (NYSE:MAN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for ManpowerGroup
How Does Jonas Prising’s Compensation Compare With Similar Sized Companies?
According to our data, ManpowerGroup Inc has a market capitalization of US$5.1b, and pays its CEO total annual compensation worth US$12m. That’s a notable increase of 9.1% on last year. When we examined a selection of companies with market caps ranging from US$4.0b to US$12.0b, we found the median CEO compensation was US$7m.
It would therefore appear that ManpowerGroup Inc pays Jonas Prising more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at ManpowerGroup, below.
Is ManpowerGroup Inc Growing?
On average over the last three years, ManpowerGroup Inc has grown earnings per share (EPS) by 20% each year. In the last year, its revenue is up 9.3%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
It could be important to check this free visual depiction of what analysts expect for the future.
Has ManpowerGroup Inc Been A Good Investment?
With a three year total loss of 10.0%, ManpowerGroup Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at ManpowerGroup Inc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. This doesn’t look great when you consider CEO remuneration is up on last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ManpowerGroup Inc (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
